71% of ETF Investors Plan to Boost Crypto Allocations

According to a recent survey by Brown Brothers Harriman, 71% of ETF investors are planning to increase their allocations into crypto. This bullish sentiment comes as the crypto ETF market begins to recover from recent volatility. The survey adds credibility to the growing interest in crypto among traditional financial investors, aligning with other surveys that indicate wealthy investors are keen on Bitcoin and other major altcoins.

Since the approval of Bitcoin ETFs in 2024, the crypto market has undergone significant transformation. BlackRock’s IBIT, for instance, was so popular that some experts declared it the greatest ETF launch ever. This trend is further supported by the survey, which shows that a majority of ETF investors are looking to expand their crypto holdings. Eric Balchunas, a prominent ETF analyst, noted that the 71% figure was higher than he had anticipated, reflecting a strong bullish sentiment in the crypto space.

This survey comes at a critical time for the ETF space and the broader crypto markets. Despite recent bearish sentiments and volatility, the market is showing signs of recovery. Issuers have resumed large BTC purchases, indicating that more investors are willing to pour liquidity into the crypto market through ETFs. This positive sentiment is further bolstered by the fact that Bitcoin ETFs have largely recovered after seeing net outflows for several weeks. Additionally, more asset managers are filing diverse ETF applications with regulatory bodies, suggesting a bullish long-term outlook for such funds.

The survey by Brown Brothers Harriman, one of the oldest and most prestigious investment banks, serves as a credible indicator of ETF sentiment. It highlights the growing interest among traditional financial investors in crypto ETFs, which could drive further growth and innovation in the crypto market. As more investors seek exposure to crypto through ETFs, the market is likely to see increased liquidity and stability, paving the way for a more robust and mature crypto ecosystem.